News
Economic Weakness · Inflation Data · Market Selloff · Trade Tariffs
US major averages experienced their worst week of the year, with the Nasdaq Composite down 3.5%, S&P 500 lower by 3.1%, and Dow Jones Industrial Average down 2.4%, as President Donald Trump's tariffs and economic weakness fears alarmed investors.
The market slump saw the S&P 500 record its largest weekly decline since June 2022 and the Dow its biggest weekly loss since March 2023. Investors are grappling with ongoing trade policy uncertainty and concerns about economic growth, exacerbated by a looming government shutdown next Friday and the Federal Reserve's upcoming policy meeting on March 18.
Economic data, including February CPI and PPI reports next week, will be critical for market direction. The Atlanta Fed GDPNow indicates the US economy is on pace to contract in the first quarter, and Challenger, Gray & Christmas reported layoff announcements jumped to their highest since 2020.
While a recession is not a baseline view for Vanguard Group's Kevin Khang, more investors are seeking portfolio protection in assets like Treasurys and gold, as recommended by Fairlead Strategies' Katie Stockton and Hartford Funds' Nanette Abuhoff Jacobson. Russell Investments' BeiChen Lin advises against buying the dip until more widespread panic is evident, noting the CBOE Volatility Index topped 26, indicating elevated volatility but not yet panic.
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